“BioTime’s execution in the second quarter demonstrates the strength of
our strategy. Our focus on clinical progress has accelerated our product
development of our core programs. With our non-core programs, we have,
in fewer than two years, generated over $43.2 million in non-dilutive
funding for BioTime, which will help fund our core programs, and created
a valuable asset that we will be distributing to our shareholders,” said
Adi Mohanty, Co-Chief Executive Officer of BioTime. “We expect this
expanded relationship between AgeX and Juvenescence may lead to one of
the most compelling organizations in the field of aging.”

Second Quarter Highlights and Financial Results

Corporate Highlights

BioTime to receive $43.2 million from Juvenescence. Under the terms of
the agreement, Juvenescence will purchase, in a single transaction,
14.4 million shares of AgeX Therapeutics from BioTime for $43.2
million. 50% of the purchase price will be paid to BioTime in cash and
the remaining 50% will be a 2-year convertible/redeemable note with an
annual interest rate of 7%, payable at maturity. If not converted into
Juvenescence stock earlier upon an IPO, at maturity BioTime will have
the option of receiving its payment in cash or by converting the note
and accrued interest into Juvenescence stock.

BioTime announced the distribution ratio for the upcoming distribution
of AgeX. BioTime shareholders will receive one share of AgeX common
stock for every 10 shares of BioTime common stock held.

AgeX closed a $5 million equity financing, through the sale of two
million AgeX common shares to Juvenescence.

BioTime announced the submission of the draft registration statement
for the proposed distribution of AgeX. The record date of July 31,
2018 for the distribution of AgeX was set by the BioTime Board of
Directors.

BioTime licensed one of its pluripotent cell lines to Goliver
Therapeutics, a France-based company focused on addressing liver
diseases with regenerative technologies. BioTime cell lines are
thoroughly characterized and NIH-registered. They include all
necessary donor history and documentation.

BioTime announced the start of an investigator-led study of Premvia™
designed and conducted by Dr. Gordon H. Sasaki. The study will focus
on safety and performance of Premvia™, in combination with
the patient’s own fat, for the treatment of volume augmentation in the
hands. Premvia™ is a medical device that has 510(k)
clearance in the U.S. for wound management. It has the same components
as Renevia®, BioTime’s investigational medical device that
is being developed as an alternative for fat grafting procedures.

OpRegen® (dry-AMD)

BioTime initiated enrollment and treatment of better vision patients
in the fourth cohort of the OpRegen® clinical trial. OpRegen®
has generally been well tolerated with no unexpected serious adverse
events noted to date. Imaging analysis from patients may suggest
positive signals of structural improvement in the retina, as we have
previously seen in our animal models.

BioTime successfully transplanted OpRegen® in the final
patient of the third cohort extension.

BioTime’s subsidiary, Cell Cure Neurosciences Ltd., was awarded a new
grant for 2018 of approximately $1.9 million from the Israel
Innovation Authority (IIA). The grant provides funding for the
continued development of OpRegen®, and to date the IIA has
provided annual grants totaling over $13 million.

BioTime further expanded the OpRegen® clinical trial in
dry-AMD with the opening of two additional U.S. sites:

Byers Eye Institute at Stanford University School of Medicine,
Diana V. Do, MD, Professor of Ophthalmology.

BioTime was awarded a grant of approximately $0.7 Million from
the Small Business Innovation Research (SBIR) program of the National
Institutes of Health. This award constitutes the second-year funding
of a $1.6 million SBIR grant to advance BioTime’s innovative, next
generation retinal restoration program addressing advanced retinal
diseases and injuries.

Second Quarter Financial Results

Cash Position and Marketable Securities: Cash, cash equivalents
and marketable securities totaled $29.2 million as of June 30, 2018,
compared to $31.4 million as of March 31, 2018.

Value of Holdings in Public Affiliates: At June 30,
2018, BioTime held common stock in publicly-traded affiliates valued
at approximately $66.8 million. This amount was the market value of
BioTime’s 21.7 million shares in Asterias Biotherapeutics (NYSE
American: AST) and 14.7 million shares in OncoCyte (NYSE American: OCX).

Revenues: BioTime’s revenue is generated primarily from research
grants, licensing fees and royalties, and subscription and advertising
from the marketing of online database products. Total revenue was $2.5
million for the second quarter of 2018, compared to $0.4 million in the
second quarter of 2017, an increase of $2.1 million. The increase in
revenue is primarily due to $1.6 million in grant revenue generated from
the Israel Innovation Authority and $0.3 million from an SBIR grant from
the National Institutes of Health.

For the six months ended June 30, 2018, BioTime’s total revenues were
$3.2 million compared to $0.8 million in the same period of 2017, an
increase of $2.4 million. The increase in revenue was primarily due to
$1.7 million in grant revenue generated from the Israel Innovation
Authority and $0.6 million from an SBIR grant from the National
Institutes of Health.

Operating Expenses: Total operating expenses for the second
quarter of 2018 were $11.6 million, as reported, which is comprised of
$9.1 million for BioTime and $2.5 million for AgeX. Total operating
expenses, as adjusted, were $9.4 million, which is comprised of $7.3
million for BioTime and $2.1 million for AgeX.

The reconciliation between GAAP and non-GAAP operating expenses by
entity, is provided in the financial tables included with this earnings
release.

R&D Expenses: Second quarter research and development
expenses were $6.4 million compared to $6.3 million for the comparable
period in 2017. Research and development expense for the six months
ended June 30, 2018 and 2017 were $13.1 million and $12.8 million,
respectively.

G&A Expenses: Second quarter general and administrative
expenses were $5.2 million compared to $4.4 million for the comparable
period in 2017, an increase of $0.8 million. This increase was primarily
attributable to the following: a $0.3 million increase in license and
related fees for patent prosecution and patent fees, a $0.2 million
increase in noncash stock-based compensation expense primarily due to
new stock option grants by AgeX, a $0.3 million increase in legal and
compliance fees for the planned distribution of AgeX stock to BioTime
shareholders, a $0.4 million increase in consulting, personnel and
related costs, and a $0.1 million increase in facilities and
maintenance. These increases were offset primarily by a decrease of $0.5
million related to LifeMap Solutions which ceased operations in July
2017.

General and administrative expenses for the six months ended June 30,
2018 were $11.2 million compared to $9.5 million for the six months
ended June 30, 2017, an increase of $1.6 million. This increase was
primarily attributable to the following: a $0.9 million increase in
legal, audit and compliance costs for the planned distribution of AgeX
stock to BioTime shareholders, a $0.5 million increase in noncash
stock-based compensation expense primarily due to stock option grants by
AgeX, a $0.6 million increase in license and related fees for patent
prosecution and patent fees, a $0.8 million increase in consulting,
personnel and related costs, and $0.2 million increase in facilities and
maintenance. These increases were offset by a decrease of $1.4 million
in combined general and administrative expenses related to OncoCyte,
which was deconsolidated in February 2017, and LifeMap Solutions, which
ceased operations in July 2017.

Net Income or loss attributable to BioTime: Second quarter
net loss attributable to BioTime was $4.2 million, or ($0.03) per share,
compared to a net loss attributable to BioTime of $11.7 million,
or ($0.11) per share, for the second quarter of 2017. Net loss
attributable to BioTime for the six months ended June 30, 2018 was $67.8
million, or ($0.53) per share, compared to a net income attributable to
BioTime of $37.6 million, or $0.34 per diluted share, for the six months
ended June 30, 2017. Net income or loss attributable to BioTime was
primarily driven by noncash gains and losses in the changes in market
values of the Asterias and OncoCyte shares held by BioTime.

Conference Call and Webcast Details

BioTime will host a conference call and webcast today, August 2, 2018 at
1:30pm PT/4:30pm ET to discuss results and corporate developments. The
conference call dial-in number in the U.S./Canada is 1-866-888-8633. For
international participants outside the U.S./Canada, the dial-in number
is 1-636-812-6629. For all callers, please refer to Conference ID number
1389978. The live webcast can be accessed on the “Events
& Presentations” page of the “Investors & Media” section on the
company’s website.

A replay of the conference call will be available for seven business
days beginning about two hours after the conclusion of the live call, by
calling toll-free from U.S./Canada: 1-855-859-2056; international
callers dial 1-404-537-3406. Use the Conference ID number 1389978.
Additionally, the archived webcast will be available on the “Events
& Presentations” page of the “Investors & Media” section on the
company’s website.

About Renevia®

Renevia® is an investigational medical device that is being
developed as an alternative for whole adipose tissue transfer (fat
grafting) procedures. Renevia® is part of the HyStem® hydrogel
family of proprietary injectable matrices, being developed as devices
for various applications and for cell and drug delivery.

About OpRegen®

OpRegen®, which is being studied for the treatment of the dry
form of AMD, consists of a suspension of retinal pigment epithelial
(RPE) cells that are delivered subretinally during a simple intraocular
injection. RPE cells are essential components of the back lining of the
retina, and function to help nourish the retina including
photoreceptors. A proprietary process that drives the differentiation of
human pluripotent stem cells is used to generate high purity OpRegen® RPE
cells. OpRegen® RPE cells are also “xeno-free," meaning that
no animal products are used at any point in the derivation and
production process. The avoidance of the use of animal products
eliminates some potential safety concerns. Preclinical studies in rats
have shown that following a single subretinal injection of OpRegen®,
the cells can rapidly organize into its natural monolayer structure in
the subretinal space and survive throughout the lifetime of the animal.
OpRegen® is designed to be an “off-the-shelf” allogeneic
(non-patient specific) product. Unlike treatments that require multiple,
frequent injections into the eye, it is expected that OpRegen® will
be administered in a single procedure. OpRegen® was granted
Fast Track designation from the FDA, which allows more frequent
interactions with the agency, and eligibility for accelerated approval
and priority review. OpRegen® is a registered trademark
of Cell Cure Neurosciences Ltd., a majority-owned subsidiary of BioTime,
Inc.

Premvia™ is contraindicated for patients with severe
allergies, indicated by a history of anaphylaxis or presence of
multiple severe allergies.

Premvia™ is specifically contraindicated for patients with
known allergies to products containing either hyaluronan or collagen
derivatives.

Premvia™ is not indicated for use in third degree burns.

Important Safety Information

Complications that may arise from wound management products may
include: infection, chronic inflammation, allergic reaction, excessive
redness, pain, or swelling. If any of these complications are present,
product should be removed from the wound area.

Federal law restricts this device to sale by or on the order of a
physician or practitioner.

Only the vial contents are sterile – outside of vials are not sterile.

Do not add additional components or additives to Premvia™.

About BioTime, Inc.

BioTime is a clinical-stage biotechnology company focused on
degenerative diseases. Its clinical programs are based on two platform
technologies: cell replacement and cell/drug delivery. With its cell
replacement platform, BioTime is producing new cells and tissues with
its proprietary pluripotent cell technologies. These cells and tissues
are developed to replace those that are either rendered dysfunctional or
lost due to degenerative diseases or injuries. BioTime’s cell/drug
delivery programs are based upon its proprietary HyStem® cell
and drug delivery matrix technology. HyStem® was
designed, in part, to provide for the transfer, retention and/or
engraftment of cellular replacement therapies. BioTime’s lead cell
delivery clinical program is Renevia®, which consists of
HyStem® combined with the patient's own adipose (fat)
progenitor cells. Renevia® met its primary endpoint in an EU
pivotal clinical trial for the treatment of facial lipoatrophy in HIV
patients in 2017. BioTime has submitted Renevia® for CE Mark
approval in the EU. There were no device related serious adverse events
reported to date. BioTime’s lead cell replacement product candidate is
OpRegen®, a retinal pigment epithelium transplant therapy,
which is in a Phase I/IIa multicenter clinical trial for the treatment
of dry age-related macular degeneration, the leading cause of blindness
in the developed world. There have been no unexpected serious adverse
events reported to date. BioTime also has significant equity holdings in
two publicly traded companies, Asterias Biotherapeutics, Inc. (NYSE
American: AST) and OncoCyte Corporation (NYSE American: OCX), and a
private company, AgeX Therapeutics, Inc.

AgeX Therapeutics, Inc., a subsidiary of BioTime, Inc. (NYSE American:
BTX), is a biotechnology company focused on the development of novel
therapeutics for age-related degenerative disease. The company’s mission
is to apply the proprietary technology platform related to
telomerase-mediated cell immortality and regenerative biology to address
a broad range of diseases of aging. The products under development
include two cell-based therapies derived from telomerase-positive
pluripotent stem cells and two product candidates derived from the
company’s proprietary induced Tissue Regeneration (iTR™) technology.
AGEX-BAT1 and AGEX-VASC1 are cell-based therapies in the preclinical
stage of development comprised of young regenerative cells formulated in
the company’s proprietary HyStem® matrix designed to correct
metabolic imbalances in aging and to restore vascular support in
ischemic tissues respectively. AGEX-iTR1547 is a drug-based formulation
in preclinical development intended to restore regenerative potential in
a wide array of aged tissues afflicted with degenerative disease using
the company’s proprietary iTR technology. Renelon™ is a first-generation
iTR product designed to promote scarless tissue repair which the Company
plans to initially develop as a topically-administered device for
commercial development through a 510(k) application. In addition to the
product candidates in early development, the company, through its
LifeMap subsidiary, currently markets genomic interpretation algorithms.
In addition, the company, through its ESI BIO division, markets Cytiva®,
comprised of PSC-derived heart muscle cells used in screening drugs for
efficacy and safety.

Certain statements contained in this release are “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Any statements that are not historical fact
including, but not limited to statements that contain words such as
“will,” “believes,” “plans,” “anticipates,” “expects,” “estimates”
should also be considered forward-looking statements. Investors are
cautioned that statements in this press release regarding: (a) any value
to BioTime shareholders of the AgeX common stock; (b) BioTime's plans or
expectations for the distribution; and (c) potential listing of AgeX
common stock on NYSE American, constitute forward-looking statements.
Forward-looking statements involve risks and uncertainties. These risks
and uncertainties, include, without limitation: (i) the possibility
that BioTime shareholders may realize little or no value from the AgeX
common stock; (ii) the potential inability of BioTime to complete
distribution in a timely manner or at all, including as a result of the
failure of BioTime and/or AgeX to obtain or maintain required federal
and state registrations and qualifications necessary to enable the
distribution, and related transactions; (iii) the possibility of
litigation that could arise as a result of or in connection with the
distribution and related transactions; and (iv) that there is no
existing public market for AgeX common stock, nor may a public market
for such securities ever develop. Actual results may differ materially
from the results anticipated in these forward-looking statements and as
such should be evaluated together with the many uncertainties that
affect the business of BioTime, Inc. and its subsidiaries, particularly
those mentioned in the cautionary statements found in more detail in the
“Risk Factors” section of BioTime’s Annual Reports on Form 10-K and
Quarterly Reports on Form 10-Q filed with the SEC (copies of which may
be obtained at www.sec.gov).
Subsequent events and developments may cause these forward-looking
statements to change. BioTime specifically disclaims any obligation or
intention to update or revise these forward-looking statements as a
result of changed events or circumstances that occur after the date of
this release, except as required by applicable law.

BIOTIME, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS)

June 30,

2018

December 31,

(Unaudited)

2017

ASSETS

CURRENT ASSETS

Cash and cash equivalents

$

27,207

$

36,838

Marketable equity securities

1,948

1,337

Trade accounts and other receivables, net

1,693

780

Receivable from affiliates, net

2,076

2,266

Prepaid expenses and other current assets

1,571

1,402

Total current assets

34,495

42,623

Property, plant and equipment, net

5,014

5,533

Deposits and other long-term assets

229

1,018

Equity method investment in OncoCyte, at fair value

37,419

68,235

Equity method investment in Asterias, at fair value

29,359

48,932

Intangible assets, net

5,735

6,900

TOTAL ASSETS

$

112,251

$

173,241

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES

Accounts payable and accrued liabilities

$

5,028

$

5,718

Capital lease and lease liabilities, current portion

225

212

Promissory notes, current portion

120

152

Deferred license and subscription revenues

367

488

Deferred grant revenues

103

309

Total current liabilities

5,843

6,879

LONG-TERM LIABILITIES

Deferred rent liabilities, net of current portion

189

105

Lease liability, net of current portion

915

1,019

Capital lease, net of current portion

116

132

Promissory notes, net of current portion

-

18

Liability classified warrants and other long-term liabilities

437

825

TOTAL LIABILITIES

7,500

8,978

Commitments and contingencies

SHAREHOLDERS’ EQUITY

Preferred shares, no par value, authorized 2,000 shares; none issued
and outstanding as of June 30, 2018 and December 31, 2017

-

-

Common shares, no par value, 250,000 shares authorized; 126,873
shares issued and outstanding as of June 30, 2018 and 126,866 shares
issued and outstanding as of December 31, 2017

383,529

378,487

Accumulated other comprehensive income

1,082

451

Accumulated deficit

(283,630

)

(216,297

)

BioTime, Inc. shareholders’ equity

100,981

162,641

Noncontrolling interest

3,770

1,622

Total shareholders’ equity

104,751

164,263

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

112,251

$

173,241

BIOTIME, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)

Three Months Ended

Six Months Ended

June 30,

June 30,

2018

2017

2018

2017

REVENUES:

Grant revenue

$

1,941

$

-

$

2,266

$

11

Royalties from product sales and license fees

91

81

227

191

Subscription and advertisement revenues

333

300

572

564

Sale of research products and services

182

-

182

5

Total revenues

2,547

381

3,247

771

Cost of sales

(106

)

(5

)

(215

)

(62

)

Gross Profit

2,441

376

3,032

709

OPERATING EXPENSES:

Research and development

(6,358

)

(6,271

)

(12,293

)

(12,765

)

Acquired in-process research and development

-

-

(800

)

-

General and administrative

(5,227

)

(4,423

)

(11,163

)

(9,524

)

Total operating expenses

(11,585

)

(10,694

)

(24,256

)

(22,289

)

Gain on sale of assets

-

1,754

-

1,754

Loss from operations

(9,144

)

(8,564

)

(21,224

)

(19,826

)

OTHER INCOME/(EXPENSES):

Interest income (expense), net

52

(413

)

105

(719

)

Gain on sale of equity method investment in Ascendance

-

-

3,215

-

Gain on deconsolidation of OncoCyte

-

-

-

71,697

Gain (loss) on equity method investment in OncoCyte at fair value

6,603

(11,006

)

(30,816

)

5,136

Gain (loss) on equity method investment in Asterias at fair value

(2,175

)

3,262

(19,573

)

(22,835

)

Unrealized gain on marketable equity securities

397

-

612

-

Other income (expense), net

(379

)

617

(663

)

1,344

Total other income (expense), net

4,498

(7,540

)

(47,120

)

54,623

INCOME (LOSS) BEFORE INCOME TAXES

(4,646

)

(16,104

)

(68,344

)

34,797

Deferred income tax benefit

-

3,877

-

-

NET INCOME (LOSS)

(4,646

)

(12,227

)

(68,344

)

34,797

Net loss attributable to noncontrolling interest

431

576

581

2,840

NET INCOME (LOSS) ATTRIBUTABLE TO BIOTIME, INC.

$

(4,215

)

$

(11,651

)

$

(67,763

)

$

37,637

NET INCOME (LOSS) PER COMMON SHARE:

BASIC

$

(0.03

)

$

(0.11

)

$

(0.53

)

$

0.35

DILUTED

$

(0.03

)

$

(0.11

)

$

(0.53

)

$

0.34

WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING:

BASIC

126,873

110,874

126,871

108,804

DILUTED

126,873

110,874

126,871

109,296

BIOTIME, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN THOUSANDS)

(UNAUDITED)

Six Months Ended

June 30,

2018

2017

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss) attributable to BioTime, Inc.

$

(67,763

)

$

37,637

Net loss allocable to noncontrolling interest

(581

)

(2,840

)

Adjustments to reconcile net income (loss) attributable to BioTime,
Inc. to net cash used in operating activities:

This press release includes operating expenses prepared in accordance
with accounting principles generally accepted in the United States
(GAAP) and, includes operating expenses, by entity, prepared in
accordance with GAAP. This press release also includes certain
historical non-GAAP operating expenses and non-GAAP operating expenses,
by entity. In particular, BioTime has provided both (a) non-GAAP total
operating expenses, adjusted to exclude noncash stock-based and other
compensation, depreciation and amortization expense, and acquired
in-process research and development expense, a nonrecurring item, and
(b) non-GAAP operating expenses, by entity, to exclude those same
charges by the respective entities for consistency. Non-GAAP financial
measures are not meant to be considered in isolation or as a substitute
for comparable financial measures prepared in accordance with GAAP.
However, BioTime believes the presentation of non-GAAP total operating
expenses and non-GAAP operating expenses, by entity, when viewed in
conjunction with our GAAP total operating expenses, and GAAP operating
expenses by entity, respectively, is helpful in understanding BioTime’s
ongoing operating expenses and its programs within various entities,
including BioTime’s programs in clinical development.

Furthermore, management uses these non-GAAP financial measures in the
aggregate and on an entity basis to establish budgets and operational
goals, to manage BioTime’s business and to evaluate its performance and
its programs in clinical development.

BIOTIME, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE

ADJUSTED OPERATING EXPENSES

Amounts In Thousands

For the Three MonthsEnded June 30, 2018(unaudited)

For the Six Months EndedJune 30, 2018(unaudited)

GAAP Operating Expenses - as reported

$

11,585

$

24,256

Stock-based and other noncash compensation expense (1)

(1,268

)

(2,587

)

Depreciation and amortization expense (1)

(861

)

(1,734

)

Acquired in-process research and development expense (2)

-

(800

)

Non-GAAP Operating Expenses, as adjusted

$

9,456

$

19,135

GAAP Operating Expenses - by entity

BioTime and subsidiaries other than AgeX Therapeutics, Inc.

$

9,131

$

18,121

AgeX Therapeutics, Inc. and subsidiaries

2,454

6,135

GAAP Operating Expenses - by entity

$

11,585

$

24,256

Non-GAAP Operating Expenses - as adjusted, by entity

BioTime and subsidiaries other than AgeX Therapeutics, Inc. (3)

$

7,323

$

14,518

AgeX Therapeutics, Inc. and subsidiaries (4)

2,133

4,617

Non-GAAP Operating Expenses - as adjusted, by entity

$

9,456

$

19,135

(1)

Noncash charges

(2)

AgeX acquired certain in-process research and development as part of
an asset acquisition from Ascendance, considered to be a
nonrecurring item.

(3)

BioTime, Inc. includes Cell Cure Neurosciences Ltd., ES Cell
International Pte. Ltd. and OrthoCyte Corporation. For the three and
six months ended June 30, 2018, the GAAP and non-GAAP operating
expenses do not include grant revenues of $1.9 million and $2.3
million, respectively, as grants are revenues for the Company.